Article about changing
US cents and nickels to a steel composition

May 2008

Steel Cents and Nickels come closer to reality

Most everyone
can't help but see it every day - costs have been rising for most
everything. Basic metals are no different. Copper, nickel
and zinc are high enough that it costs the US government mint more than
a penny to make a cent, and more than 5 cents to make a nickel!

With inflation
problems and weakness in the dollar appearing to be a continuous
problem, the Mint says something has to be done.

As one
(unofficial) government employee said:

"Congress
needs to realize, that it is not right to continue spending taxpayers
money to make cents and nickels for more than we get for them."

Congress called to action - new coin bill proposed

Already our government has
passed rulings making it a crime and a fine for melting cents and
nickels. (They fear that when the public realizes their pennies
and nickels may be worth more than face value a serious shortage will
occur.)

Soon we may
be saying "Its a steel" - when talking about cents and nickels

You may have seen it on the news. Lots of
discussion about should the government stop making cents altogether.
Some think we can do just fine without them. Others think it will
pose unfair practices by stores, governments, etc. It may even
lead to "widespread cheating" as one citizen said, when considering what
stores would do if purchases had to be rounded.

By and large, if dollar
depreciation continues, some day "no cent" may become a reality.
But for now, the trend it toward changing the composition of the cent
and nickel to steel.

House of
Representatives takes action to preserve the Cent

A bill authorizing action to preserve the cent has been
passed by the House of Representatives. (See Coin Modernization and
Taxpayer Savings Act of 2008: H.R. 5512) This bill
authorizes a change in the composition of the cent to Copper-color
steel, as well as a change in the five cent nickel coin to nickel-coated
steel. The stated purpose is to reduce the cost of
minting 1 cent and 5 cent coins, and to have the Treasury do research on
possible changes to coins metallic content.

US Mint wants
more authority

Director of the US Mint, Edmund Moy, has announced
opposition to the bill. You would think they would be
happy that they can reduce costs. However, it seems the mint wants
more authority, so that they can make future coin compositions as they
see fit, without having to go to Congress every time they want to change
something.

Congress doesn't want to give up all of its Constitutional authority

By the authority of our original US Constitution Congress
is given power to decide new coin composition. Understandably,
they don't want to give up something they've had control over for a
couple centuries.

When will
cents and nickel coins change?

This coin bill has gone
through several versions. If passed by the Senate in its present
form, 9 months after the day enacted the mint will be producing a cent
made primarily of steel. Within 2 years after enactment the nickel
composition will change to steel with a nickel coating.

Current Coin
Composition

Cent

Nickel

CENT

NICKEL

Copper plated ZincBeginning in 1982 the US mint stopped making "copper" cents

Copper and NickelMost people don't know that nickels are made of mostly
copper